The value of a 95-day T-bill with a face value of $100,000 that has a quoted yield of 4.00 percent is closest to:

Name: The value of a 95-day T-bill with a face value of $100,000 that has a quoted yield of 4.00 percent is closest to:
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Question

Quizplus · Accepted Answer

The value of the T-bill can be calculated using the formula: Price = Face Value / (1 + (yield * (days to maturity/360))). Plugging in the given values: Price = $100,000 / (1 + (0.04 * (95/360))) = $98,969.63.

The Value of a 95-Day T-Bill with a Face Value